It is clear, however, that the macro environment is very fragile.'Įvercore ISI analysts do not believe that Jerome Powell will signal a new monetary policy path at the upcoming Jackson Hole gathering even as signs of easing inflation are causing market participants to expect just such a move. 'Recent comments from the CEOs of BHP and Glencore indicate that they share this view about a gradual China recovery as well. They predict Chinese policies will cause a gradual recovery in commodity demand that will offset a slowdown in the U.S. While mining shares are likely to be volatile in the near term, the general trend over the next six-to-12 months should be higher, according to Jefferies analysts. Maybe the economy has achieved the soft landing that people were hoping for.'' The market is shaking off a lot of the recessionary concerns and saying 'well maybe inflation has peaked. 'Any sign that the consumer is still strong is a good thing. Joe Saluzzi, co-head of equity trading at Themis Trading, pointed out that Wal-Mart and Home Depot were responsible for more than half of the Dow's gain.

In Asia, shares advanced the dollar dipped Treasury yields were little changed and oil and gold moved higher.Įuropean stocks should start Wednesday's session with further gains after Wall Street closed solidly higher with retail earnings in focus.Ī rally in retailer shares drove the Dow Industrials to a fifth day of gains on Tuesday, with both the Dow and S&P 500 closing at their highest levels since late April. Solid gains on Wall Street, fueled by a rally in retail stocks, should support a firmer European start on Wednesday. EU GDP, Unemployment UK Producer Prices, Monthly Inflation, House Price Index France New Home Sales FOMC Meeting Minutes no major corporate updates expected

Goldilocks wraps